New Zealand, Aussie dollars up

The Australian and New Zealand dollars were swept higher by a wave of short covering on Tuesday as investors scrambled to unwind positions after Chinese inflation data wrong-footed the market. The closely watched report showed prices rose 5.5 percent in the year to May, well below dire predictions of as high as 6.0 percent.
Other Chinese data like industrial output all pointed to a soft landing for the economy. The Aussie dollar climbed to a high of $1.0648, having been sold down to $1.0568 ahead of the data. Support for the Aussie is seen at $1.0519, the 76.4 pct retracement of the May 25-June 5 rally, while resistance is seen at $1.0670/80. The kiwi rose to a high of $0.8195, climbing from a 1-1/2 week low of $0.8115 plumbed on Monday after a series of powerful earthquakes hit the country's second largest city, Christchurch.